Rent Today to More Wisely Invest Tomorrow
Good news, bad news, it seems no matter where we turn in real estate today no one is quite certain what the future holds. While the experts seem to think the economy will bottom out at the end of this year, as was stated Tuesday by Federal Chairman Ben Bernanke, can we ever be certain of what is to come next?
In the new economy, many of us will be forced to move, for job opportunities, to be closer to family, or to gain new education. The question is how to invest, in the most important of investments, property. Buying seems appealing and with the latest $8,000 new home tax credit now may seem like the perfect opportunity to buy but, if this is not your first home and with tighter lending restrictions, your best investment may be time. How can you invest in time? Rent.
In the past several decades there has been much emphasis on home ownership, rentals were less desirable and often passed over. However, those were the days of easy mortgage lending and few restrictions. Home ownership was a simple and easy investment choice. However, today, with rising down payments up to 20% of the total cost of the home, tighter mortgage lending, a fluid and often changing job market, renting is the smart decision.
If you need to move or are forced to move due to job change, often the first thought is to look at real estate for sale. We run to Zillow, Craigslist, and well-known real estate sites looking for a house in which to invest our money. But how are you sure that the new neighborhood you move into is one that you will enjoy? Why risk moving to a part of town that seems nice the first month you live in a new city but, six months or even a year down the road, you realize all of your new friends and all of the places you enjoy visiting are in a different part of town. Especially in this housing market, making a rash decision concerning the purchase of your new home could burden you with a hefty mortgage and an undesirable location.
The simple solution? Renting! There are many rentals on the market and indeed, for those interested in the Richmond, Virginia housing market, renting is an easy solution to a complex and confusing investment quandary. There are also many up and coming neighborhoods in Richmond, and other cities, which are on the rise despite the economy. Waiting a year could mean the difference between settling for what is available now and the opportunity to make an investment down the road in the newest, most lively neighborhood in town. There are so many reasons to rent, in the new economy, and certainly if you are moving to Richmond, Virginia, there is no better solution.
Why not take time out, wait and see what happens to the market and then invest your hard-earned savings into a house you love, in a neighborhood you know you will enjoy. Renting is the golden opportunity to save money, learn more about the city in which you live, and give the economy time to show you how to invest. Time is your most valuable resource, why not use it to your advantage? Rent now while considering how to make your most important investment, buying your home.
